Vingroup’s profit down 7% to $42 mln in first six months

Vietnam’s biggest private conglomerate Vingroup reported after-tax profits and net revenues of VND987 billion ($41.68 million) and VND86.12 trillion ($3.64 billion) in the first half of the year, down 7% and up 138% year-on-year, respectively.

The strong rise in revenue was driven by the real estate transfer segment that earned VND102.53 trillion ($4.33 billion), up 13 times year-on-year, thanks mainly to the handover of low-rise housing at the Vinhomes Ocean Park 2 project in Hung Yen province.

Other segments, including real estate investment, hotel services, tourism, entertainment and manufacturing also recorded robust growth.

In the second quarter of 2023, Vingroup posted net revenues of VND47.14 trillion ($1.99 billion) and after-tax profits of VND398 billion ($16.8 million), up 252% and down 28% year-on-year, respectively.

As of June 2023, Vingroup's total assets stood at VND608 trillion ($25.67 billion), of which short-term receivables were VND150.59 trillion ($6.35 billion), fixed assets, VND140.54 trillion ($5.9 billion), and long-term unfinished assets, VND114.62 trillion ($4.84 billion).

At the end of Q2, the group's equity reached VND137.71 trillion ($5.8 billion), up 1.5% year-on-hear, with liabilities at VND470.28 trillion ($19.86 billion), up 6.45%.

Vingroup, listed on the Ho Chi Minh Stock Exchange (HoSE) as VIC, has set a record-high net revenue target of VND190 trillion ($8 billion) in 2023, up 86.6% year-on-year.

The group also eyes a post-tax profit of VND2 trillion ($85.25 million) this year, unchanged from 2022, according to documents released at its annual general meeting in May.

H2 tasks and plans

Regarding its operations in the remaining half of the year, Vingroup said that its automobile arm VinFast will develop its sales network in target markets at home and abroad, speeding up sales and handing over products in key markets, particularly the U.S. It will also implement a direct marketing strategy, offer test-drives and promote new models at motor exhibitions.

The company is delivering its VF 5, VF 8 and VF 9 models and preparing to launch production of the VF 6 and VF 7 models, while accelerating the implementation of a production plant project in North Carolina, the U.S.

VinFast will also continue to research and produce other environmentally-friendly vehicles including electric buses, motorbikes and bicycles.

VinES Energy Solutions will provide complete energy solutions, firmly supporting VinFast's strategy of self-reliance regarding input materials, promote R&D capacity and boost global strategic cooperation.

In the housing sector, which will continue to be affected by the macro-economy and policy environments, Vinhomes will take full advantage of its land fund to develop smart, green urban projects with full utilities.

In addition, Vinhomes will focus on further developing the Happy Home model in the near future, integrating a fully-fledged utility model with schools, commercial centers, children's play areas, parks and sports areas.

In the industrial real estate segment, Vinhomes IZ will closely follow foreign direct investment (FDI) cash flows and focus on researching and applying smart industrial real estate models, including ecological industrial parks and large-scale specialized industrial parks.

Vincom Retail plans to open two new trade centers this year, focusing on expanding coverage in potential provinces and cities, as well as promoting the expansion of the network of new tenants under two groups of international brands and Vietnamese brands.

In the field of resort tourism and entertainment, Vinpearl targets a strong recovery as the tourism industry prospers again, with significant contributions coming its hotel and tourism, food and entertainment and golf facilities.